Ireland to split troubled bank, sell some assets
Ireland plans to split its most troubled financial institution, Anglo Irish Bank, as part of wider efforts to reassure international lenders that the Irish are dealing with their debt crisis.
Finance Minister Brian Lenihan said Wednesday that dividing Anglo, nationalized in early 2009 on the edge of insolvency, into "good" and "bad" banks would represent the least costly outcome to Irish taxpayers.
The government has plowed nearly $29 billion into the specialist lender, and analysts warn that the bill could top $45 billion, a fifth of gross domestic product.
Lenihan said the "good" splinter of Anglo would become a deposit-only bank "completely separated from Anglo's loan assets."
The bad bank would gradually dispose of Anglo's largely dysfunctional book of loans to Ireland's construction and property barons.
- Associated Press
Oracle to pay Hurd $950,000, plus bonus
Oracle plans to pay newly appointed co-President Mark Hurd a base salary of $950,000 annually and said the ousted Hewlett-Packard chief executive is eligible for a target bonus of $5 million this fiscal year.
Oracle released the details of Hurd's pay package in a filing with the Securities and Exchange Commission on Wednesday. It includes stock options totaling 10 million shares. That would come on top of a severance payment from HP that could top $40 million.
Hurd resigned as HP's chief executive last month after an internal ethics investigation. Oracle named him as its co-president Monday, and HP sued Hurd a day later to block him from joining the rival company.
- Associated Press
l Moody's reports on writedowns: U.S. banks have taken losses on about two-thirds of the loan charge-offs expected through 2011, Moody's Investors Service said. The banks will incur $744 billion in loan charge-offs between 2008 and 2011, with $476 billion already written off, analyst Craig Emrick wrote in a report dated Tuesday.
l Vodafone loses tax appeal: An Indian court ruled Wednesday that Vodafone Group is liable for an estimated $2.6 billion in taxes for its 2007 acquisition of one of India's largest mobile phone companies. The decision sets a precedent that could effect hundreds of foreign transactions and have a chilling effect on foreign investment, experts say.
l Goldman faces British fine: Britain's Financial Services Authority is expected to fine Goldman Sachs about $30 million after an investigation of the bank's activities in London, the Wall Street Journal and the Financial Times reported Wednesday.
- From news services